- The relative energy index (RSI) has been trending within the overvalued area since October 20.
- The 12-hour BTC chart is on the verge of flashing the promote sign with a green-nine candlestick.
Bitcoin has been flying excessive for a month, recapturing the creativeness of the mainstream. Since October 7, the value has gone up from $10,600 to $15,665. Nevertheless, it seems just like the ensuing FOMO has bloated the value to overvalued ranges.
Bitcoin to face correction?
Following a closely bullish Thursday, the value has began to maneuver horizontally, as BTC reaches the cusp of the $16,000-zone. The relative energy index (RSI) has been trending within the overvalued area since October 20. This exhibits that the value is considerably overvalued and can face bearish correction quickly.
BTC/USD each day chart
The 12-hour chart additional validates this bearish outlook. On this timeframe, the value is on the verge of flashing the promote sign through green-nine candlestick within the TD sequential indicator. It seems like the value is going through immense promoting stress because the premier cryptocurrency nears $16,000.
BTC/USD 12-hour chart
IntoTheBlock’s In/Out of the Cash Round Value (IOMAP) exhibits robust support and resistance zones. It’s a useful metric that exhibits us how far the value could fall. So, there seems to be a robust help wall at $15,000, which ought to take up lots of promoting stress.
If the bears handle to interrupt beneath this wall, they’ll face two extra help partitions at $14,000 and $13,500. These two ranges ought to be robust sufficient to soak up any residual promoting stress. This successfully caps off BTC’s draw back at $13,500.
On the flipside, it seems like this upcoming bearish correction has not affected the whales in any respect, as they carry on accumulating. As per Santiment’s holders distribution chart, the variety of addresses holding 10,000-100,000 tokens went up from 104 to 109 since October 21. It is a very constructive signal for the community.
Bitcoin holders distribution
To sum up, BTC is on the verge of a value correction. Nevertheless, robust help partitions will cap off the draw back at $13,500. In the meantime, the bulls are strengthening their positions regardless of this upcoming correction.